Many people freelance to make money instead of, or in addition to, being employed. In a 2020 report, the number of freelancers was estimated at 59 million, or 36% of the labor force. A freelancer manages their own time, finds clients, does work, and collects payment. Note that this is similar to the number of people who are self-employed so there is some overlap between who is considered a freelancer and who is considered self-employed.
Advantages of freelancing:
- Set your own schedule
- Take on as much or as little work as you need or want (assuming you don’t have trouble finding more work)
Disadvantages of freelancing:
- Payments are not consistent because they depend on how many clients you have and when they pay.
- Sometimes clients don’t pay and you have to choose if you use your time to chase them down, or trade some of the money to pay a debt collector to chase them down, or write off the loss and keep working for different clients.
- You have to split your time between finding new clients and doing work for existing clients.
Compass
Return to wealth plans or financial security plan.